Consumer confidence rose in November as people became more optimistic about the broad economic outlook, although they were cautious about their own finances, a report said today.
The overall IIB Bank/ESRI Consumer Sentiment Index climbed to 87.9 in November from 86.7 in October.
The index of consumer expectations, the forward looking part of the index, rose to 82.9 last month from 79.8 in October, but the index of current economic conditions declined to 95.2 from 97.0.
"The outlook for household finances over the next 12 months acted to reduce consumer sentiment. Interest rates are one of the main factors cited by consumers as influencing their outlook during the month," said economist David Duffy of the ESRI.
Austin Hughes, chief economist at IIB Bank, said consumers felt a healthy economy had not translated into stronger spending power for them and that Minister for Finance Brian Cowen should use Wednesday's budget to give consumers a boost.
Mr Cowen is expected to include home loan relief measures to help first-time buyers in Wednesday's budget and to cut the top rate of income tax at least to 41 per cent from the current 42 per cent.